Tipsý Bar and Lounge sits at Hafnarstræti 1 to 3 in central Reykjavik, a cocktail bar named Best Cocktail Bar in Iceland 2025 by the Bartenders' Choice Awards.
The bar runs as a polished but easy room in the centre of Reykjavik, built around a cocktail counter and a list that aims for the city's drinks crowd. Anyone after a serious cocktail in a relaxed setting finds the format easy. Anyone chasing a quiet wine bar or a late dance floor looks elsewhere.
Tipsý took the Best Cocktail Bar in Iceland title at the 2025 Bartenders' Choice Awards, and Guide to Iceland lists it among the city's top cocktail rooms. The bar leans on a confident drinks programme rather than a gimmick, which is the draw the guides return to. That award is the identity the room is built around.
The list runs from classics to signature cocktails, with beer and wine for a mixed table and a happy hour from four to seven each day. Prices sit at the higher end for the city, in line with a bar that competes on its drinks. Asking the bartender for a signature off the seasonal list is the easiest way in.
The room is central and stylish without being stiff, with counter seats and tables that fill from the early evening on weekends. It reads as a place to settle in for a few rounds rather than a quick stop. The format favours two to six over a large group.
Regulars and city guides flag two points: the happy hour is the reason to arrive early, and the cocktails are the reason to stay past it. The crowd skews toward locals and visitors who came for the drinks rather than the noise. The bar runs later on weekends, so timing sets the mood.
Tipsý works for a cocktail led evening, a relaxed group round, and a drink that lives up to a best in country award. It is the wrong call for a cheap pint or a loud, late club.
Hafnarstræti runs through the centre of Reykjavik near the old harbour, walkable from most of the 101 district, with the bar open from late afternoon until one most nights and until two on weekends. The happy hour window is the value play, while the later hours bring the fuller room. Arriving before eight is the easiest way to take a seat at the counter.
The bar sits in the thick of the central nightlife run, a short walk from the main square and the harbour, which makes it an easy first stop on a crawl. That position pulls a steady mix of locals and visitors. It works as a place to start the night on a high note.
What sets it apart is the award and the drinks behind it, which give the room a claim few central bars can match. The guides cite it as the cocktail reference for the city in 2025 rather than one option among many. The pull is the programme rather than the setting alone.
On the order, a signature from the seasonal list during happy hour is the value play, with the classics a safe second round. Beer and wine round out the list for a mixed table. The kitchen is limited, so plan a meal elsewhere first.
The bottom line is a central cocktail bar with a best in country award and a strong daily happy hour, set apart by a drinks programme the city rates first. For a cocktail led Reykjavik night it is a clear call. Compare it against the rest of our best cocktail bars in Reykjavik guide, the wider list of bars in Reykjavik, and our roundup of Reykjavik wine bars. Drinkers after more of the same should weigh Hverfisgata 12 and Apotek Bar.
Sources: Bartenders' Choice Awards 2025; Guide to Iceland best bars guide; Visit Reykjavik; Wanderlog; Google Maps reviews.
